BILL NUMBER: AB 2119	CHAPTERED  09/11/00

	CHAPTER   380
	FILED WITH SECRETARY OF STATE   SEPTEMBER 11, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 8, 2000
	PASSED THE ASSEMBLY   AUGUST 24, 2000
	PASSED THE SENATE   AUGUST 22, 2000
	AMENDED IN SENATE   AUGUST 7, 2000
	AMENDED IN SENATE   JUNE 19, 2000
	AMENDED IN ASSEMBLY   APRIL 26, 2000

INTRODUCED BY   Assembly Member Leach

                        FEBRUARY 22, 2000

   An act to amend Sections 719 and 725 of, and to add Sections 702.5
and 735.2 to, the Harbors and Navigation Code, relating to yacht and
ship brokers.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2119, Leach.  Yacht and Ship Brokers Act.
   (1) The existing Yacht and Ship Brokers Act prescribes the
qualifications of persons deemed qualified for a broker's license,
including the requirement that the applicant have owned and operated
a marine business selling new or used yachts for a minimum of 3
continuous years immediately preceding application for a broker's
license, or have been employed as a broker or a yacht salesperson in
another state.
   This bill would require that any declaration, license, or other
record generated pursuant to the act be construed as a record under
the Uniform Electronic Transactions Act.  The bill would revise the
criteria for qualification to submit an application for a broker's
license.
   Existing provisions of the act authorize the issuance of temporary
licenses to salespersons for a period not to exceed 60 days.
   The bill would require the applicant for a temporary license to be
at least 18 years of age.
   (2) Under existing law, in prescribed circumstances, a record or
signature may not be denied legal effect or enforceability solely
because it is in electronic form.
   This bill would require the Department of Boating and Waterways to
accept any electronic record or electronic or digital signature
created, generated, sent, communicated, received, or stored on or
after January 1, 2000.
   (3) The bill also would make technical, nonsubstantive changes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 702.5 is added to the Harbors and Navigation
Code, to read:
   702.5.  Any declaration, license, or other record electronically
generated or transmitted pursuant to this article shall meet the
requirements of a "record" under Title 2.5 (commencing with Section
1633.1) of Part 2 of Division 3 of the Civil Code.
  SEC. 2.  Section 719 of the Harbors and Navigation Code is amended
to read:
   719.  (a) A person shall be deemed qualified to submit an
application for a broker's license if, as shown on the department's
records, the person meets all of the following requirements:
   (1) Is at least 18 years of age.
   (2) Has not been cited for a violation of this article within the
preceding two years.
   (3) Possesses a working knowledge and understanding of the
principles of the yacht brokerage business and profession.
   (4) Either has been employed within five years preceding his or
her application as a California licensed salesperson for at least one
year, has been licensed as a California broker within five years
preceding his or her application, has owned and operated a marine
business selling new or used yachts for a minimum of three continuous
years, or has been employed as a broker or a yacht salesperson in
another state where that employment was a primary occupation for a
minimum of three continuous years immediately preceding application
for a broker's license in California.  Proof of employment as a
broker in another state or as an employee of a marine business
selling new or used yachts in California shall be in the form of all
of the following:
   (A) State, if applicable, and federal income tax returns, or a
proof of earning statement made by the applicant under penalty of
perjury, for the three-year period preceding the filing of the
application in California.
   (B) If bonded, a statement issued by the applicant's bonding
company that no action has been taken against the bond for fraud or
gross misrepresentation for the period for which the bond has been
issued.
   (C) A copy of all business permits, issued by any state, county,
or city agency, which, if applicable, includes the fictitious
business name ("dba" or "doing business as") under which the
applicant conducted a yacht or ship brokerage business or a marine
business selling new or used yachts in California for the three-year
period preceding application for a California broker's license.
   (D) If the applicant conducts a yacht or ship brokerage business
in another state that requires broker or salesperson licensing,
evidence of a current license issued by that state.
   (b) If the applicant is a partnership, then one of the partners of
the applicant shall have the foregoing qualifications.
   (c) If the applicant is a corporation, then the officer or
officers of the corporation to be designated for a license as
provided in this article shall have the foregoing qualifications.
  SEC. 3.  Section 725 of the Harbors and Navigation Code is amended
to read:
   725.  Temporary licenses may be issued to salespersons under the
following conditions:
   (a) The licenses shall be issued for a period not to exceed 60
days and only one license shall be issued to each applicant.
   (b) An application shall be filed for a temporary license and for
a permanent license and at the same time the applicant shall pay all
the prescribed fees.
   (c) The application shall be in the form and upon the conditions
required by the department as provided in this article with respect
to a permanent salesperson's license.
   (d) On or before the expiration date of the temporary license, the
licensee shall take a written examination for a permanent license.
If, without a valid excuse, the licensee fails to appear for the
examination at the time prescribed, the examination fee shall be
forfeited.  In the event of failure to pass the required examination,
the department shall notify the applicant, may suggest further
study, and upon payment of fees, shall schedule a reexamination.
   (e) The applicant shall be at least 18 years of age.
  SEC. 4.  Section 735.2 is added to the Harbors and Navigation Code,
to read:
   735.2.  The department shall accept any electronic record or
electronic or digital signature created, generated, sent,
communicated, received, or stored by electronic means on or after
January 1, 2000.  A "digital signature" means a signature that
complies with the regulations adopted by the Secretary of State
relating to digital signatures.
